Final answer:
The two main challenges to international distribution and logistics are navigating the complex environment of developing countries and managing the impact of parallel imports. Technological and policy improvements can help, but concerns about national security and environmental standards can lead to trade restrictions.
Step-by-step explanation:
The two most cited challenges to international distribution and logistics are distribution in developing countries and parallel imports. Distribution in developing countries can be difficult due to inadequate infrastructure, technology, and policies, making trade less efficient. Parallel imports, on the other hand, involve goods being imported legally but without the permission of the intellectual property owner, leading to market disruptions and potential revenue loss for authorized distributors.
Contemporary problems affecting foreign trade and political relations include integrating finance and child care through international trade. Advances in technology and transportation, along with policy reforms, can help overcome supply chain issues, while protecting labor rights is critical for maintaining these supply chains. Additionally, international trade offers small economies the opportunity to take advantage of economies of scale and competition which can stimulate variety and innovation.
However, concerns about protecting national interests against environmental harm and dependency on imported goods may cause governments to restrict imports. Understanding how the demand and supply model applies to international trade is essential in analyzing the balance between open trade and national protections.